KENYA – FRESH Networks, a pioneering dairy FoodTech startup, has launched its fourth solution that is IoT-powered cold chain and milk ATMs with an aim of significantly shift how milk is distributed to low-income households.
According to the startup, the FRESH enables Dairy companies to enter this market segment directly and offer households flexible quantities of loose high-quality milk at attractive prices using a unique technology suite.
The solution consisting of a smart milk dispensing machines placed inside local neighbourhood shops, smart handling equipment to transfer cold milk efficiently to ATMs, smart logistics technology to efficiently plan and track ATM refilling operations with minimal losses.
In addition, it has a real-time visibility over stock & quality levels, with smart sales forecasting models, retail price & digital payment systems, consumer marketing & support tools, network design, operations, and maintenance tools and services.
The team from FRESH Networks developed this solution for over three years, working closely with Dairy industry partners, shopkeepers, regulators, and other stakeholders.
FRESH pilots have dispensed over 140,000 liters of milk to 2,000+ households in Kenya, Rwanda, and India. The solution is incubated within KOKO Networks.
The fourth solution’s technology benefits from KOKO’s extensive experience deploying and operating 3,000 cooking fuel dispensers to serve nearly 1.3 million households across Kenya today.
The problem the dairy startup seeks address the serious public health risks of toxic contamination, adulteration, and milk-borne diseases (estimated to cost KES ~400 billion annually).
In addition, the company noted that many families are forced to opt for this product because safer milk is up to 50% more expensive per liter, or just isn’t available where they live or in their desired purchase quantities.
“Around 68% of all marketed milk in Kenya is sold in loose form through unregulated, untraceable informal channels, mostly to low-income families living in cities,” FRESH Networks observed.
Data from the Kenya National Bureau of Statistics indicate that the dairy sector supports about 1.8 million smallholder farmers and contributes to about 4.5 percent of the economy.
According to data from the county Department of Agriculture and Livestock, the current annual production stands at 220 million litres from 340,000 herds of livestock.
In June, thousands of litres of milk went to waste due to a lack of storage facilities, as private processors lowered the farm gate prices to below Sh30 a litre as they grapple with the challenges of excess production.
The tribulations were complicated by delays by the New Kenya Cooperative Creameries (New KCC) to pay farmers, amounting to millions and the move by private processors to cut the intake by more than half owing to lack of capacity for the excess produce.
According to interviewed dairy farmers, the cost of animal feed remains the most expensive input in dairy production, accounting for 60 per cent of the total cost and affecting constant milk production.
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